Look at THQ. They went up for sale and no one bought them. Why? Sometimes it is cheaper to let a company crash and buy up the pieces on the super cheap.
Liquidity and Capital Resources
from today's filing:
As of July 31, 2014, our cash and cash equivalents balance was $10.9 million. Due to credit balances with several of our retailers that exceeded other accounts receivable, funds available to us under our factoring agreement as of July 31, 2014 were limited. We expect continued fluctuations in the use and availability of cash due to the seasonality of our business, timing of receivables collections and working capital needs necessary to finance our business. Working capital as of July 31, 2014 was $7.9 million compared to $15.7 million at October 31, 2013. The Company plans to utilize a significant portion of its available capital resources to complete the development of, or purchase inventory for the release of a number of video games between September 1 and December 1, 2014. There can be no assurance that the Company will be able to generate the level of operating revenues in its business plan as a result of the release of these games. If the games do not generate forcasted levels of revenue there can be no assurance that additional sources of financing will be available on acceptable terms, if at all. If no additional sources of financing are available, it could have a material effect on future operating prospects.
We have suffered losses that raise substantial doubt about our ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. As of July 31, 2014, we believe that there may not be sufficient capital resources from operations and existing financing arrangements in order to meet operating expenses and working capital requirements for the next twelve months. Accordingly, we are evaluating various alternatives, including reducing operating expenses and personnel costs, securing additional financing for future business activities, and other strategic alternatives including a sale or merger of the Company.
Majesco has not given any guidance for a few quarters now. I would not expect them to change their tune today.
By your own logic Mr. German, this means you are not a trader and must have been holding this stock for a very long time. It's down about 90% since about when you popped up. That's a long time to be watching your money disappear.
delay, you hit the nail on the head. While the German is pumping a number implying huge sales, they were not at full price and probably not anywhere near it. There is no way Microsoft is reimbursing Majesco full price per download. So while the German is yelling in ALL CAPS about how many were downloaded, take it with a grain of salt. If anything, it gets Monaco out there in players hands for cheap, or even free and Majesco can get a sequel in the works to cash in on that some day.
If earnings are this week, or even Monday of next week, you'd think they would have announced something by now. A couple days notice before earnings isn't exactly a bullish sign.
from the Q report:
Salaries and related decreased by $9,587 to $55,625 from $65,212 for the three months ended June 30, 2014 and 2013, respectively. The decrease is due to two additional employees last year who are no longer with the company, offset by an increase in the CEO's salary based on the terms of his employment agreement.
So the CEO got a raise while the company had $0 income. Yeah.......
Be skeptical of too much, too fast. Majesco can use some extra cash to make it to October and may not be afraid to dilute some if the price is right. Remember, these guys have a tack record of not caring too much about shareholders.
I don't think they would at these prices but if it pops in the $3-$3.5 range or more, they may get an itchy trigger finger.